System and apparatus for encrypted data collection using rfid cards

ABSTRACT

A secure smart card is described. The smart card can include a processor, a memory and a transceiver. The smart card can communicate with various terminals and store a digital signature and other information on the card. Another terminal can validate the information stored on the smart card using the digital signature. In certain embodiments, the terminal can also validate the information by using a blockchain. The advanced design of the smart card obviates the need for a network connection.

BACKGROUND

Advancements in communication technology have revolutionized the waycustomers interact with service providers and product sellers.Technologies such as the Internet have made it easier for customers topurchase products remotely. At the same time, various innovations havebeen introduced in connection with methods of payment. These innovationsmake customers less dependent on paper money. Payment cards whichfacilitate transactions using electronic money are an example of suchinnovations. These cards have simplified in-store and onlinetransactions, and they offer unique security features which make themsafer than cash.

SUMMARY

Payment cards such as credit cards and debit cards have become verypopular among the users, and as a result, it is very common for a userto carry multiple payment cards in his or her wallet. Yet designers,manufacturers and service providers of these cards have been reluctantto introduce new technology for these cards. For example, magneticstripe cards have been in service for many years despite theavailability of alternative technology which is far superior. Moreover,certain service providers of payment cards have been hesitant to addalternative functions to these cards because these service providersbelieved the addition of these functions could compromise the securityand safety of these cards. In other words, they believed that, from thetechnical standpoint, it was not possible to adequately protect theinformation stored on these cards. Furthermore, some service providersdid not allow third parties to add applets to their payment cardsbecause the applets could compete with their own platform. Therefore,payment cards generally performed only one function, and that was apayment function. However, given the popularity of these cards, therecan be significant benefits in introducing new technology and functionsfor payment cards.

At the same time, with the expansion of Internet transactions, thedemand for in-store products and services has been weak. To address thisissue, retailers and other stores have encouraged customers to visittheir locations because customers who visit stores are more likely tomake purchases in-store as opposed to online. For example, some storeshave offered coupons to encourage customers to visit their locations.Other stores have created loyalty programs which reward customers forpurchasing a product from the store. However, these rewards programsrequire a customer to make an actual purchase to reward the customer,i.e., once the customer makes a purchase, certain credit value will beadded to the customer's account. Nevertheless, these programs havefailed to attract customers to stores because these programs fail todynamically address customers' needs and demands. For example, it is notpossible to increase the value of a coupon after the coupon is printed.Yet, as the demand for a product fluctuates, stores need to be able tochange the coupon values to address the fluctuation. Therefore, it isbeneficial to use a smart card which can respond to customer needs anddemands in a dynamic fashion.

To encourage customer visits to stores and dynamically respond tocustomers' needs and demands, a store can track customer visits to thestore's location. For example, it is beneficial to introduce a devicewhich can create a record of customer visits to various locations. It isalso beneficial to introduce a device which can determine which productsa customer has expressed interest in when the customer visited a store.It is also beneficial to implement a device which can determine how manystores, or which stores the customer visits before the customer makes apurchase. In short, it is beneficial to provide customers with a devicewhich can encourage them to visit a store and at the same time tracktheir shopping behavior when they visit the store. Some believe offeringcustomer's rewards cards can address these issues.

However, offering each customer a standalone reward card or device wouldnot be effective because customers generally resist the idea of carryingadditional cards or devices. It is inconvenient for customers to carryadditional cards (e.g., a different reward card for each store) in theirwallets, particularly when they have many credit cards to carry. Inaddition, oftentimes customers shop spontaneously, which means that,unless they have the card with them in their wallets, it is unlikely forthem to use the card at that time.

Therefore, it is an object of this disclosure to describe a smart cardwhich can function both as a payment card and as a mean for trackingcustomer behavior particularly with respect to customer visits tostores. Customer behavior can be tracked by collecting certain data eachtime the customer visits a store. For example, certain data can becollected and stored on the smart card if the customer scans thecustomer's smart card each time the customer visits a store. The smartcard can register the time of the visit and the identity of the locationwhere the customer visited. The smart card can also count the number oftimes the customer visited each store. In certain embodiments, the smartcard can retain a reward value for the customer's visit to the stores.This information can be accompanied by a digital signature to ensurethat its authenticity can be verified when the customer requestsredemption of any rewards stored on the card. Additionally, to enhancethe security of the data, this information can be simultaneously storedin a blockchain so that it is verifiable at the point when the customerrequests redemption of the rewards.

The information stored on the customer's card can be used to, forexample, offer a discount, credit or reward to the customer when thecustomer makes a purchase at the same or a different store.Additionally, this data can be used by the merchants to track theircustomers' behaviors. For example, each time the customer scans thesmart card, the merchant receives an identity of the customer, and thus,the merchant can study each customer's shopping pattern.

The smart card of the present disclosure can offer an integrated rewardsprogram which does not require network integration. Specifically,various merchants can join forces to offer a rewards program shared byall of them. Because all the information pertaining to a customer'sshopping interactions with each merchant is stored on the card, therewards program would obviate the need for integrating each merchant'scomputer network with the networks of other merchants or serviceproviders. Moreover, the smart card can create a universal rewardsprogram which is usable by all the merchants.

Furthermore, the fact that the smart card can function both as a meanfor payment and as a mean for tracking customer behavior in stores canbe beneficial in that a customer is more likely to carry the smart cardas the customer's primary payment card. Specifically, because the carddoes not require an actual purchase to reward the customer when visitinga store, the customer is more likely to carry the card as a mean ofpayment as opposed to a card that does not have this capability. Inaddition, once the customer decides which product or service topurchase, the customer is more likely to use the smart card because thecustomer is more likely to want to redeem the customer's reward pointsor credit.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1A illustrates a smart card according to an example embodiment.

FIG. 1B illustrates an exemplary contact pad including an RFID tagbehind the contact pad.

FIG. 2 illustrates a terminal according to an example embodiment.

FIG. 3 illustrates exemplary hardware components for a host computer.

FIG. 4 shows an example flow process for secure storage of informationon a smart card using a terminal.

FIGS. 5A-C show example data structures stored on an example smart card.

DETAILED DESCRIPTION

The size of a smart card can be the same as the size of a payment card,credit card or a debit card. According to ID-1 of the ISO/IEC 7810standard, the dimensions of a smart card can be 85.60 by 53.98millimeters (3.37 in×2.13 in). However, a smart card according to thesedisclosures can have a different size, and it is not necessary for asmart card to be implemented in a payment card.

A smart card can include processing circuitry for storing and processinginformation. The processing circuitry can include processors, memories,error and parity/CRC checkers, data encoders, anticollision algorithms,controllers, command decoders, security primitives and tamperproofinghardware.

The storage of information can take place in a memory of the processingcircuitry, which can be a read-only memory, write-once read-multiplememory or read/write memory, e.g., RAM, ROM and EEPROM. A smart card caninclude one or more of these memories. A read-only memory can be factoryprogrammable as read-only or one-time programmable. One-timeprogrammability provides the opportunity to write once then read manytimes. A write once/read-multiple memory can be programmed at a point intime after the memory chip has left the factory. Once the memory isprogrammed, it cannot be rewritten, but it can be read many times. Aread/write memory can be programmed and re-programed many times afterleaving the factory. It can also be read many times.

The memory of a smart card can be divided into several zones, eachprovided with a different level of security. The smart card processorcan keep track of which memory addresses belong to which zones and thecircumstances under which each zone can be accessed. A smart cardprocessor can also process information and store the information ontothe memory. In an example embodiment, a smart card memory can be dividedinto four zones: a secret zone, a confidential zone, a usage zone, and apublic zone.

A secret zone can be used for storage of information which can be usedonly by the processor itself, e.g., passwords, cryptographic keys. Theinformation stored in this zone is not readable outside of the smartcard. In an embodiment, the secret zone can be implemented with aseparate processor that is capable of performing cryptographicfunctions. Cryptographic keys can be passed in to the secret zone or canbe generated in the secret zone, and in either case the keys can bestored in the secret zone and used to support cryptographic services. Ifnecessary, cryptographic keys can be exported from the secret zone.

In an example embodiment, the smart card can be a JavaCard which caninclude one or more applets. The applets can be firewalled, and data canbe allocated to the applet for storage. The data can be storedtransactionally in an EEPROM flash memory, e.g., if the write isn'tcomplete when the power is removed, the contents remain the same asbefore.

A confidential zone can be used to store a list of all transactions madewith the card. The confidential zone can have password protection. In anexample embodiment, the password is known only to the card issuer, whocan examine the history of the card for evidence of misuse of thesystem. The confidential zone can have a read-only access restriction sothat the information stored in this zone could not be modified, e.g.,transaction list could not be modified.

A usage zone could be used for storage of information which can beperiodically updated or modified. Depending on the sensitivity of thedata, a password can be implemented for this zone. The usage zone canhave both read and write access protected by a password.

A public zone can be used for keeping nonsensitive information, such asthe card issuer's name and address. The public zone can have read-onlyaccess, without a password.

Some smart cards can require physical contact with a terminal (orreader/writer, reader, or scanner) to provide the information stored onthe card to the terminal or to write information on the card. Othersmart cards can be contactless, i.e., the cards can wirelesslycommunicate with the terminal. A contactless smart card can be a creditcard including a magnetic tape or a radio-frequency identification(“RFID”) tag. Some contactless smart cards can include both the magnetictape and the RFID tag.

A terminal can communicate with a contact smart card by establishingelectrical contact between the smart card and the terminal. As such, acontact smart card can have a contact area comprising several contactpads. The area can be approximately 1 square centimeter (0.16 sq in).Establishing contact between the pads and the terminal can be achievedby inserting (or dipping) the contact smart card into a terminal. Usingthe electrical connection, the terminal can transmit signals to thecard, and in response, the card can transmit its information to theterminal. Generally, contact smart cards do not contain a battery.However, in some embodiments, contact smart cards can include batteries.

A terminal can communicate with a contactless smart card if thecontactless card is held in proximity to the terminal. The terminal canread the contactless card over a short distance using near-fieldcommunication (“NFC”) technology, which uses radio frequency induction.A contactless card can include an inductor to capture some of theincident radio-frequency interrogation signal transmitted by theterminal, rectify it, and use it to power the card's processingcircuitry. As such, contactless cards can function without an internalpower source. However, in some embodiments, contactless smart cards caninclude an internal power source.

The smart card can be EMV-compliant. Europay, MasterCard and Visa(“EMV”) is a payment method based upon a technical standard for smartpayment cards. EMV cards can store their data on integrated circuits inaddition to magnetic stripes.

The standard for contact cards can be based on ISO/IEC 7816, and thestandard for contactless card can be based on ISO/IEC 14443.

FIG. 1A illustrates a smart card 100 according to an example embodiment.In this embodiment, the smart card 100 can be a payment card issued by aservice provider 101 which can be displayed on the front or back of thesmart card 100. The size of the smart card 100 can be compliant withID-1 of the ISO/IEC 7810 standard, i.e., 85.60 by 53.98 millimeters. Thesmart card 100 can include a contact pad 102 for establishing contactwith a contact terminal. The smart card 100 can also include processingcircuitry, antenna and other components not displayed in FIG. 1A. Thesecomponents can be located behind the contact pad 102. The smart card 100can also include various identification information 103 displayed onfront or back of the card. The smart card 100 can also include amagnetic strip or tape, which can be located on the back of the card.

In an example embodiment, the smart card is provided with aradio-frequency identification (“RFID”) tag. In some embodiments, theRFID tag can include processing circuitry for storing and processinginformation that modulates and demodulates a radio-frequency signal(usually received from a terminal, reader/writer or scanner). An RFIDtag can also include an antenna for receiving and transmitting thesignal. Additionally, an RFID tag can include a power source or meansfor collecting DC power from the incident terminal signal. These meanscan include modulators, voltage regulators, resets, and connections toan antenna. The antenna can be an electric dipole antenna or a coilantenna.

There can be several kinds of RFID tags, e.g., active tags,battery-assisted passive tags and passive tags. An active tag can beelectrically coupled to a power source, such as a battery, which canpower the integrated circuit. As a result, an active tag canperiodically transmit as a signal the information stored on the tag. Abattery-assisted passive tag can have an activateable power sourceelectrically coupled to it, and the power source can be activated whenthe tag is exposed to a signal from a terminal. A passive tag is notpowered by a power source. Rather, the tag is energized by the radioenergy transmitted to the tag by the terminal.

In an example embodiment of a passive RFID tag, the tag relies on asignal from the terminal to power up. The tag can include modulators,voltage regulators, resets, and connections to an antenna. The antennacan be an electric dipole antenna or a coil antenna, and the processingcircuitry of the tag can be connected to the antenna. The type of theantenna can be determined based on the frequency band used by the tag.Typically, an electric dipole antenna is used with an ultra-highfrequency tag, but high frequency tags use a coil antenna. For example,the antennas for an RFID tag can be a simple dipole if the tag uses915-MHz frequency, but the antenna can be a complex coiled shape if thetag uses 13.56-MHz frequency. The antenna captures and transmits signalsto and from the terminal. The coupling from the terminal to the tagprovides both the transmission data and the power to operate the passiveRFID tag.

FIG. 1B illustrates an exemplary contact pad 102 including an RFID tagbehind the contact pad 102. In this example embodiment, the contact pad102 can include several gold-plated pads. Behind the contact pad 102,there can be processing circuitry 104 and an RFID tag. The RFID tag caninclude an antenna 105. In this example embodiment, the processingcircuitry 104 is part of the RFID tag.

In some embodiments, the antenna of the RFID tag of the smart card canbe placed within the card and around the contact pad 102. In otherembodiments, the RFID tag of the smart card can include severalantennas. For example, in addition to antenna 105, the smart card caninclude an antenna which extends around the contact pad 102 andthroughout the smart card 100. Other combinations are also possible. Insome embodiments, the antenna can be external to the contact pad and theprocessing circuitry. In some other embodiments, there can be an antennaintegral with the processing circuitry and the antenna can be used withan external booster coil.

In an example embodiment, the coil of a smart card can act as thesecondary of an air core transformer. The terminal can communicate withthe smart card by cutting power or amplitude modulation. The smart cardcan infer the data transmitted from the terminal using the gaps in thesmart card's power connection, which is functionally maintained throughcapacitors. The smart card can communicate back by switching a load onthe smart card's coil or load modulation. Load modulation can bedetected in the terminal's coil through interference.

There can be several types of terminals (or reader/writers or scanners),e.g., contact and contactless. A terminal can read information from asmart card and write information onto the smart card. In someembodiments, the terminal can pass information from the smart card to ahost computer and write information from the host computer into thesmart card. In some embodiments, the host computer can be the terminal.The terminal can provide power to the smart card and link the card'shardware interface to the host computer. Since the smart card'sprocessor can control the actual flow of information into and out of thecard's memories, the terminal can operate with only minimal processingcapabilities for sending the information to the host computer.

In some embodiments, the terminal can include a processor and atransceiver. The contact type smart cards generally include aninterface, which can consist of an 8-contact connector (e.g., contactpad 102). The interface can look like a small gold circle or series ofsquares on the surface of the card. Other arrangements are alsopossible. The terminal can include several connector pins. In order fora terminal to communicate with the contact-type card, the pins of theterminal's connector must physically touch the contacts on the smartcard's connector during data transfer. The processor of the terminal candecode any data received from the smart card. The terminal can alsoupdate, delete or modify the information stored on the smart card.

A terminal can write data on the smart card by passing the data to theprocessor of the smart card. The processor can process the data andstore it in the smart card's memory. A terminal can have a two-waycommunication with a smart card as described in ISO 14443. The smartcard can include an RFID tag. The two-way communication can be digitallyencoded. There can be several frequency ranges, and several proprietaryformats for the two-way communication (e.g., HID in the 125 Mhz range).The 13.56 Mhz frequency range (NFC) is dominated by ISO 14443 compatiblecards.

A terminal and a smart card can exchange messages, which can includecommands or data. For example, a terminal can send a command message tothe smart card, the smart card can process the command message in itsprocessor and the smart card can send back a response message to theterminal. Each of the command message and the response message caninclude data. A message can include TLV (Type, Length and Value) dataand a command such as STORE DATA command which prompts storage of thedata included in the message in the smart card.

FIG. 2 illustrates a terminal 200 according to an example embodiment. Inthis example embodiment, the terminal 200 can include a display screen201. This display screen can be any type of display screen, e.g., an LCDdisplay screen. The terminal 200 can also include a keypad 202. Usingthe keypad 202, a customer can enter information into the terminal 200.The terminal 200 can also include an opening 203 for inserting a smartcard into the terminal 200. Using the opening 203, a customer can inserta smart card into the terminal 200 so that the pins of the terminal 200can electrically connect with the contact pad of the smart card. In someembodiments, the terminal 200 can include a magnetic card opening 204.Using the magnetic card opening 204, the customer can swipe the smartcard at the terminal 200 and the terminal 200 can obtain any informationstored on the magnetic tape of the smart card.

In an example embodiment, the terminal can be a contactless RFIDterminal, which can include antennas for sending and receiving signals,a transceiver, and a processor to decode data. In a passive system, theterminal can transmit an energy field that can wake up the tag and powerits chip, enabling it to transmit or store data. In turn, the tagconverts the radio signal into usable power, and responds to theterminal in the form of a radio signal. The signal can include the tag'sidentity and other information. Once the terminal receives the response,the terminal converts the response and extracts any information includedin the radio signal. The information collected from the tag is thentransferred through a communications interface to a host computersystem, where the data can be stored in a database or analyzed by thecomputer system. The terminal can also update, delete or modify theinformation stored on the smart card.

In the example embodiment of FIG. 2, the terminal 200 is provided withone or more antennas (not displayed), which enable the device to readinformation from a contactless smart card and write information on thecontactless smart card. The terminal 200 includes an indicator 205,which shows that the device can be contactless.

In these disclosures, the terms reader/writer, scanner and terminal havebeen used interchangeably, and they all refer to a device which can scana smart card and/or write information on the smart card.

In some embodiments, the terminal can be connected to a host computer.In other embodiments, the terminal can be integrated in the hostcomputer.

FIG. 3 illustrates exemplary hardware components for implementingembodiments of a host computer. A computer system 300, or other computersystems similarly configured, can include and execute one or moresubsystem components to perform functions described herein, includingthe steps of various flow processes described in this disclosure.Likewise, a mobile device, a cell phone, a smartphone, a laptop, adesktop, a notebook, a tablet, a wearable device, a server, etc., whichincludes some of the same components of the computer system 300, can runan application (or software) and perform the steps and functionalitiesdescribed above. Computer system 300 can connect to a network 314, e.g.,Internet, or other network, to receive inquires, obtain data, andtransmit information and incentives as described above. For example,using the network 314, computer system 300 can connect to a terminal.Alternatively, the terminal can be directly connected to the computersystem 300.

The computer system 300 typically includes a memory 302, a secondarystorage device 304, and a processor 306. The computer system 300 mayalso include a plurality of processors 306 and be configured as aplurality of, e.g., bladed servers, or other known serverconfigurations. The computer system 300 may also include a networkconnection device 308, a display device 310, and an input device 312.

The memory 302 may include RAM or similar types of memory, and it maystore one or more applications for execution by processor 306. Secondarystorage device 304 may include a hard disk drive, floppy disk drive,CD-ROM drive, or other types of non-volatile data storage. Processor 306executes the application(s), such as those described herein, which arestored in memory 302 or secondary storage 304, or received from theInternet or other network 314. The processing by processor 306 can beimplemented in software, such as software modules, for execution bycomputers or other machines. These applications preferably includeinstructions executable to perform the system and subsystem componentfunctions and methods described above and illustrated in the FIGS.herein. The applications preferably provide graphical user interfaces(GUIs) through which users may view and interact with subsystemcomponents.

The computer system 300 may store one or more database structures in thesecondary storage 304, for example, for storing and maintaining theinformation necessary to perform the above-described functions.Alternatively, such information may be in storage devices separate fromthese components.

Also, as noted, processor 306 can execute one or more softwareapplications in order to provide the functions described in thisspecification, specifically to execute and perform the steps andfunctions in the process flows described herein. Such processes can beimplemented in software, such as software modules, for execution bycomputers or other machines. The GUIs may be formatted, for example, asweb pages in HyperText Markup Language (HTML), Extensible MarkupLanguage (XML) or in any other suitable form for presentation on adisplay device depending upon applications used by users to interactwith the computer system 300.

The input device 312 can include any device for entering informationinto the computer system 300, such as a touch-screen, keyboard, mouse,cursor-control device, touch-screen, microphone, digital camera, videorecorder or camcorder. The input and output device 308 may be used toenter information into GUIs during performance of the methods describedabove. The display device 310 can include any type of device forpresenting visual information such as, for example, a computer monitoror flat-screen display (or mobile device screen). The display device 310can display the GUIs and/or output from sub-system components (orsoftware).

Examples of the computer system 300 include dedicated server computers,such as bladed servers, personal computers, laptop computers, notebookcomputers, palm top computers, network computers, mobile devices, or anyprocessor-controlled device capable of executing a web browser or othertype of application for interacting with the system.

Although only one computer system 300 is shown in detail, system 300 mayuse multiple computer system or servers as necessary or desired tosupport the users and may also use back-up or redundant servers toprevent network downtime in the event of a failure of a particularserver. In addition, although computer system 300 is depicted withvarious components, one skilled in the art will appreciate that thesystem can contain additional or different components. In addition,although aspects of an implementation consistent with the above aredescribed as being stored in a memory, one skilled in the art willappreciate that these aspects can also be stored on or read from othertypes of computer program products or computer-readable media, such assecondary storage devices, including hard disks, floppy disks, orCD-ROM; or other forms of RAM or ROM. The computer-readable media mayinclude instructions for controlling the computer system 300, to performa particular method, such as methods described above.

In some embodiments, the data recorded on the smart card is not backedup in the host computer or other computers. This can be advantageous forthe smart card because it makes operation of the smart card independentof a network connection to a host computer. Therefore, it can bebeneficial to establish the authenticity of any data stored on a smartcard.

In an example embodiment, each time a terminal stores information on acard, the information includes a message authentication code (MAC), ahashed message authentication code (HMAC) or a digital signature. TheMAC, HMAC or digital signature can be a mathematical code or schemewhich can establish authenticity of the information stored on the smartcard. For example, when a customer visits a store and the customer scansthe customer's smart card at a terminal, the device can store variousinformation, including a store ID, a time, a count number, a point valueand a MAC (or HMAC or digital signature), on the customer's smart card.If the customer decides to redeem the points accumulated on thecustomer's smart card, the customer can scan the smart card at a secondterminal. In order to ensure that the information stored on the smartcard is accurate and authentic, the second terminal can use the MAC (orHMAC or digital signature) stored on the card. More specifically, theMAC (or HMAC or digital signature) establishes that the content storedon the memory of the smart card was created by a known or authorizedcard terminal. Moreover, in case of the digital signature, it preventsthe party which stored the information onto the smart card from denyingthat it wrote the information. This feature can be particularlybeneficial when multiple parties are involved in a rewards program.

A MAC can include the following algorithms. In the first step, a keygeneration algorithm can generate a key. In the second step, a signingalgorithm can return a tag created using the generated key and amessage. In the third step, a verifying algorithm verifies theauthenticity of the message given the key and the tag.

A digital signature scheme can include the following algorithms. In thefirst step, a key generation algorithm generates a private key and acorresponding public key. In the second step, a signing algorithmgenerates a digital signature using a message and a private key. In thethird step, a signature verifying algorithm can verify the message usingthe digital signature and the public key. A MAC differs from a digitalsignature in that a MAC scheme uses only one key but a digital signaturescheme uses two keys, i.e., a public key and a private key.

In an example digital signature scheme, the authenticity of the digitalsignature generated from the fixed message and fixed private key can beverified by using the corresponding public key. Moreover, thesealgorithms are selected such that it is computationally infeasible togenerate a valid signature for a party without knowing that party'sprivate key. This digital signature scheme can ensure authenticity ofthe content stored on a smart card because if the content is digitallysigned, any change in the content after signature invalidates thesignature. In other words, it is practically impossible to modify thecontent and its signature to produce new content with a valid signature.

In the example embodiment of above, each terminal which can storeinformation on a smart card can be provided with a private key and asigning algorithm. Moreover, each terminal which can redeem pointsstored on the smart card, can be provided with a public key and averifying algorithm. When the customer scan's the customer's smart cardat a first terminal, the device can store a store ID, a time, a countnumber, a point value and a digital signature, on the customer's smartcard. The digital signature can be generated using a signing algorithmand the private key specific to the terminal. The terminal can generatea digital signature for the information that it stored on the smartcard. Specifically, using the private key, the signing algorithm and theinformation (e.g., store ID, time, count number, etc.), the terminalgenerates the digital signature. Subsequently, when the customer scansthe smart card at a second terminal, the terminal can discover certaininformation on the smart card. The terminal can verify authenticity ofthe information stored on the card using the public key, the verifyingalgorithm and information discovered on the card.

The digital signature stored on the smart can be useful for variousreasons. For example, when a smart card is scanned for redeeming points,although certain information on the card can be accurate, e.g., storeID, other information might have been altered, e.g., point values. Inother words, a hacker would be motivated to forge the content of a smartcard to receive more rewards than what the hacker earned. A digitalsignature can prevent this by authenticating the value of points storedon the smart card. So long as the private key associated with theterminal which stored the information is remained secret, the digitalsignature can authenticate the value of points stored on the smart card.

In some example embodiments, before the content is converted into a MACor digital signature using a signing algorithm, the message or contentcan be hashed. A hash function is a mathematical algorithm that maps amessage of arbitrary size to a bit string of a fixed size (i.e., ahash). A hash function can be a one-way function, i.e., it is infeasibleto invert the function. In an example embodiment, the MAC is built froma hash function, and thus, the product is a HMAC. In another exampleembodiment, the digital signature is built from a hash function.

There are several reasons to make a MAC or digital signature form hashedcontent as opposed to the content itself. For example, because a hashhas a fixed size, the hash of the content can be shorter than the actualcontent, and thus, the MAC or the digital signature of the hash can bemuch shorter than the MAC or the digital signature of the actualcontent. Moreover, because it is faster to hash the content than toconvert it into MAC or digital signature, it is faster to convert thehash of the content into a MAC or digital signature. In an exampleembodiment, the content of the smart card is written using a HMAC.

FIG. 4 shows an example flow process for secure storage of informationon a smart card using a terminal. In this example flow process, in step401, a pair of private and public keys are generated. These keys can begenerated using a key generation algorithm. In step 402, the private keyis stored on a first terminal and the public key is stored on a secondterminal. In step 403, a customer scans a smart card at the firstterminal to request storage of reward information on the customer'ssmart card. In this example embodiment, the terminal can additionallyreceive the smart card's identification information, e.g., thecustomer's name, identification number, or other identifyinginformation. The terminal can transmit the customer's information to thehost computer.

In step 404, the first terminal generates several pieces of informationto be stored on the customer's smart card. For example, the terminal cangather a store identification number, a time, a count number, and areward value to store on the customer's smart card. Using thisinformation and the private key stored on the first terminal, theterminal generates a digital signature. In some embodiments, theinformation gathered can be hashed before the information is convertedinto the digital signature. In some embodiments, the digital signatureis generated at the host computer. In step 405, the terminal stores thegathered information as well as the digital signature onto the smartcard of the customer.

In step 406, the customer scans the card at the second terminal toreceive the reward value stored on the card. The second terminalreceives the information stored on the smart card, including the digitalsignature. In step 407, the terminal generates another digital signatureusing the information scanned from the smart card and the public keystored on the second terminal. In case the digital signature wasgenerated from the hash of the information, the terminal generates thehash of the information prior to generating the digital signature. Instep 408, the terminal determines whether the information is authenticby comparing the digital signature stored on the smart card to thedigital signature generated using the public key. If the digitalsignatures match, the customer can be given the reward value stored onthe card. If the digital signatures do not match, the terminal can writea code on the smart card to indicate that the card includes fraudulentinformation, e.g., the terminal can write a code in the smart card todisable the card.

In some embodiments, the smart card and the terminal can operate withoutany connection to a host computer. As a result, reward information canbe stored on the card and authenticated without a host computer.Therefore, by using this system, the need for network compatibilitybetween the terminals can be obviated, particularly when there aremultiple parties involved.

In an example embodiment, when a user scans the user's smart card at aterminal, the terminal obtains the information stored on the card.Various types of information can be stored on a smart card. In anexample embodiment, a smart card can include financial informationstored on the card. This financial information can include an accountnumber, a name of an account holder, a name of a financial institution,an identification number which identifies the account holder, etc. Thisinformation can be the same as the information stored on a credit card,debit card or any other payment card. In some embodiments, informationsuch as those included on an individual's driving license can be storedin the smart card. This information can include the user's address,birth date, photo, signature, biometric information, etc. Thisinformation can assist the user in signing up for products and services.For example, a store can set up a terminal for signing up visitors for aservice. When visiting the terminal, a user can scan the user's smartcard at the terminal, and thus provide the terminal with the user'sinformation such as name and address. With this information, theterminal can sign the user up for the service. This information can bestored on any of the zones of the memory of the smart card, e.g., secretzone or confidential zone. Depending on where the information is stored,the information can be accessible using an encryption algorithm, apassword, etc.

In an example embodiment, when a user scans a card, the terminal canstore certain information on the card. For example, the smart card canstore information relating to a rewards program on a user's smart card.FIGS. 5A-C show example data structures stored on an example smart card.In these example embodiments, the customer can scan the customer's smartcard in various locations, including stores. Each time the customerscan's the customer's smart card, the terminal stores a set of data onthe customer's smart card. For example, the terminal can store anidentification number for the store (or a specific location of thestore), an identification number for the user, a count number and adigital signature. The identification number for the store is a uniquenumber specific to the store or the terminal. This number identifieswhich terminal stored the information on the smart card. Theidentification number for the user is a number which identifies theuser. This number can be obtained from the card itself. In someembodiments, the identification number for the user can be obtained fromthe user who enters the number on a touch pad of the terminal. The countnumber indicates how many times the user has visited the store (or thatspecific terminal). In some embodiments, this number is determined bythe terminal, which can scan the smart card and determine how manyrecords relating to the specific store location (e.g., Store ID) arepresent on the smart card. If the terminal discovers more than onerecord on the terminal, the terminal can determine the count number byadding one to the number of records discovered. In other embodiments,the terminal determines the count number by looking at the counternumber of records relating to the specific store location (e.g., StoreID). If a record with the specific Store ID has a count number ofgreater than 1, the terminal adds another unit to that count number.

Terminals can store other information on smart cards as well. In someembodiments, a terminal can store a credit value or a point value on thesmart card. for example, the terminal can be configured to reward thecustomer for each time the customer visits the store. This reward can bein the form of a credit value or a point value. The store can allow thecustomer to redeem the points when, for example, the customer is makinga purchase.

In the example embodiment of FIG. 5A, the terminal can store a recordincluding a Store ID 501, a User ID 502, a Count No. 503 and a DigitalSignature 504 each time the card is scanned at a location with aterminal. For example, a customer with User ID number 559712 can visit alocation with Store ID number 1045A89 for the first time. The customercan scan the customer's smart card at this location. Once the customerscans the customer's card at a terminal in this location, the terminalcan store a record 505 on the smart card including the Store ID for theterminal, the customer's User ID and a count number 1 (because thecustomer visited the location for the first time). The terminal candetermine that the customer scanned the customer's smart card at thislocation for the first time by reviewing all the records stored on thecustomer's smart card. Since there are no other records with the sameStore ID number, the terminal determines that the smart card was scannedat this location for the first time. In addition, the terminal cancreate a digital signature using a private key stored on the terminal.The digital signature can also be stored on the smart card as part ofrecord 505 when the customer scans the smart card at the terminal.

The terminal can also transmit some of this information included inrecord 505 to the host computer. For example, the terminal can transmitthe Store ID, the User ID, the Count No. and the Digital Signature tothe host computer to store them for further analysis or for verificationat a later point in time. The terminal can also transmit otherinformation to the host computer, e.g., the name of the cardholder(i.e., customer), the card number of the customer, etc.

The customer can also scan the smart card at a second location for afirst time. Once scanned at the second location, the terminal at thesecond location can add a second record 506 for the second location tothe smart card. Similar to the record 505, the record 506 shown in FIG.5B can also include an identification number for the store (i.e., StoreID 501), an identification number for the user (i.e., User ID 502), acount number (i.e., Count No. 503) and a digital signature (i.e.,Digital Signature 504). In this example embodiment, the customer visitedthe second location for the first time. Therefore, the count number forthe second location is also 1.

The customer can also scan the smart card at the first location for asecond time. Once the customer scans the smart card at the firstlocation, the terminal reviews all the records stored on the smart cardand determines that there is a record 505 with the same Store ID number.Therefore, the terminal determines that the customer is visiting thesame location for a second time. In response to this determination,there are several ways by which the terminal can create a record toreflect the customer's visit. For example, in some embodiments, theterminal can create a new record on the card. In other embodiments, theterminal can overwrite the Count No. field of the original record. Forexample, the terminal can overwrite the Count No. 503 for the record 505with a new number, which indicates the number of times the customer hasvisited the location plus one. In this case, the Count No. of the record507 becomes 2 after the customer's second visit to the first location.Other ways of updating the records are also known in the art.

In some embodiments, a customer can present the customer's smart cardfor, e.g., redemption of points or credit value. In these embodiments,upon reading the records stored on the smart card, the terminal can takean action to prevent rereading of the records again, e.g., to prevent acustomer from being rewarded multiple times for the same credit. Forexample, a terminal can delete the records after reading the records forredemption of points. In other embodiments, the records can be markedwith a specific indicator so that other terminals would not read therecords when determining how many times a user has visited a particularstore.

In an example embodiment, all or some of the rewards transactionsconducted by a smart card can be registered on a blockchain, which is anopen, distributed ledger that can record transactions between twoparties efficiently and in a verifiable and permanent way. For example,each time a customer scans a smart card at a terminal, the terminalsaves a Store ID on the smart card. In order to prevent fraudulenttransactions, the terminal can transmit this information to ablockchain. Using the blockchain, when the customer presents the smartcard for redemption, the terminal can verify the information on the cardby comparing it to the entry on the blockchain.

In an example embodiment, the service providers have access to a privateblockchain. Each time a user scans the user's smart card, the terminalenters a transaction on the private blockchain. The benefit of thissystem is that all the participant service providers have access to theaccounting ledger for all of the accountholders, and thus, can easilyverify whether the balance displayed on the card is genuine.

The communication protocol between a smart card and a terminal can beany communication protocol known by persons of ordinary skill in theart. For example, in an example embodiment, the communication protocolcan be NFC, which is a set of communication protocols that enable twoelectronic devices to establish communication by bringing them close toeach other. Other communication protocols can include ISO 7816 forcontact cards or ISO 14443 for contactless cards. ISO 14443 (type A andB) also defines two signaling methods.

In an example embodiment, a user is provided with a smart card. Thesmart card can be compatible with a plurality of terminals such that theterminals can read the content of the memory of the smart card and writeover or add to the already written content of the memory. In thisexample embodiment, the user can visit a location including a terminal.The user can scan the smart card by, e.g., holding the card close to theterminal, inserting the card in the terminal or swiping the card. In anexample embodiment, the location can be a retail store, and the user canvisit the location because the store offers the user points or creditfor visiting the store and scanning the user's smart card at thelocation.

Upon holding the card close to the terminal, the terminal can write intothe memory of the smart card a record indicating the customer's visit tothe store, e.g., a location identification number, a user identificationnumber, a time of the visit, a count number, a point or credit value, adigital signature, etc. In some embodiments, the user can visit thelocation because the retailer credits the user each time the user visitsthe retailer. As such, once the user holds the smart card close to theterminal, the terminal writes over a count unit field of the memory ofthe smart card. In other words, the terminal adds one number to thecount number. Some stores can offer a discount to their customers basedon the value of the count number, e.g., 1 percent discount for eachvisit.

In an example embodiment, a smart card can store a customer'sinformation such as the customer's name, address, email address, etc. Aservice provider can provide several terminals at the service provider'slocation. Each one of these terminals are configured to scan theinformation stored on a smart card. By scanning the customer's smartcard at one of these terminals, the customer can give authorization tothe service provider to sign up the customer for a service. Therefore,the smart card can simplify the signup process.

In an example embodiment, a retailer can determine customer interest ina product. For example, the retailer can setup a terminal next to aparticular product and ask the customers to scan their cards if they areinterested in the product. The retailer can also offer a discount to thecustomers who have scanned their card prior to purchase of the product.The product can be a product that the retailer will introduce in future,i.e., the product is not available for sale now. Therefore, by allowingcustomers to scan their card prior to release of the product, theretailer can determine the level of interest for the product, e.g., ahost computer can gather and analyze this data.

In an example embodiment, a smart card can be used to offer variablecoupons. For example, a retailer can offer several terminals in itsstore. Each terminal can announce a coupon rate. A customer can scan thecustomer's smart card and store the coupon on the customer's smart card.The coupon rate can be determined by the retailer based on the demandfor a product or the inventory for that product. However, the couponrate can also be determined by other factors such as the customer'scount number for that store. Because the coupon rate can be announced atthe terminals in the store, customers can be encouraged to visit thestore and receive the coupon value. At the same time, based onfluctuations in demand, the retailer can change the coupon rate andfacilitate sales transactions.

In an example embodiment, a smart card can be used as an identificationcard to prove that the cardholder has visited a particular location. Forexample, a cardholder can be a security guard who has to visit severallocations throughout the guard's shift. These locations can be providedwith terminals, one at each location. The security guard can be providedwith a smart card, and when the security guard visits these locations,the security guard can scan the smart at each location. Each terminalcan create on the smart card a record of the respective location thatthe guard has visited, and thereby the guard can prove that he hasvisited these locations.

In an example embodiment, the data gathered by scanning smart cards atvarious terminals can be gathered and aggregated at the host computer.The host computer can gather data relating to customers' shoppinghabits. The host computer can use this data as well as other data, e.g.,credit card sales receipts, to analyze sales patterns and derive adynamic demand curve. The host computer can transmit this information toretailers and service providers and recommend coupon rates based on thisanalysis. Based on these recommendations, retailers and serviceproviders can offer coupons to their customers to encourage salestransactions.

The present disclosure is not to be limited in terms of the particularembodiments described in this application, which are intended asillustrations of various aspects. Many modifications and variations canbe made without departing from its spirit and scope, as may be apparent.Functionally equivalent methods and apparatuses within the scope of thedisclosure, in addition to those enumerated herein, may be apparent fromthe foregoing representative descriptions. Such modifications andvariations are intended to fall within the scope of the appendedrepresentative claims. The present disclosure is to be limited only bythe terms of the appended representative claims, along with the fullscope of equivalents to which such representative claims are entitled.It is also to be understood that the terminology used herein is for thepurpose of describing particular embodiments only and is not intended tobe limiting.

1-20. (canceled)
 21. A payment terminal comprising: a processor, amemory and a transceiver, wherein: the processor is configured togenerate: a first signal including instructions to enable a cardprocessor to store a set of data on a card memory of a card, wherein theset of data includes a count number; and a second signal includinginstructions to enable the card processor to update the set of data onthe card memory, wherein the updating includes incrementing the countnumber by one unit; and the transceiver is configured to: transmit tothe card the first signal and the second signal; and receive from thecard a third signal including all the sets of data stored on the memoryof the card.
 22. The payment terminal of claim 21, wherein the processoris configured to: generate a digital signature using a private key andthe count number; and include the digital signature in the set of data.23. The payment terminal of 22, wherein the processor is configured to:generate a second digital signature using the private key and the setsof data received from the card; and compare the digital signature withthe second digital signature.
 24. The payment terminal of claim 23,wherein the processor is configured to: authorize a transaction if thedigital signature matches the second digital signature; and generate afourth signal for transmission to the card to mark the sets of data asread.
 25. The payment terminal of claim 21, wherein the second signal isconfigured to cause the card processor to: overwrite the set of datastored on the card; or create a new record including a new count number.26. The payment terminal of claim 21, wherein the processor is furtherconfigured to cause the transceiver to transmit the sets of data to ahost computer through a network connection.
 27. The payment terminal ofclaim 21, wherein the payment terminal is located at a store.
 28. Thepayment terminal of claim 27, wherein: the count number indicates howmany times a user of the card has visited the store and scanned the cardat the payment terminal; and the processor is configured to authorize atransaction and process a discount based on the count number.
 29. Thepayment terminal of claim 21, wherein the processor is furtherconfigured to, in response to receiving the third signal, generate afifth signal and cause the transceiver to transmit a fifth signal to thecard, wherein the fifth signal is configured to cause the card processorto store a reward value on the card.
 30. The payment terminal of claim29, wherein: the transceiver is configured to receive a sixth signalindicating the reward value from the card; and the processor isconfigured to process the sixth signal to authorize a transaction basedon the reward value.
 31. The payment terminal of claim 21, wherein theprocessor is configured to generate a seventh signal indicating a couponrate and the transceiver is configured to transmit the seventh signal tothe card.
 32. The payment terminal of claim 31, wherein the transceiveris configured to receive an eighth signal indicating the coupon ratefrom the card; and the processor is configured to process the eighthsignal to authorize a transaction based on the coupon rate.
 33. Apayment card comprising: a processor, a memory and a transceiver,wherein: the transceiver is configured to receive a first signal and asecond signal form a payment terminal and transmit a third signal to thepayment terminal; the processor is configured to: in response toreceiving the first signal, store a set of data on the memory of thepayment card, wherein the set of data includes a count number; inresponse to receiving the second signal, update the set of data byincrementing the count number by one unit; and generate the third signalincluding all the sets of data stored on the memory of the payment card.34. The payment card of claim 33, wherein the set of data includes adigital signature.
 35. The payment card of claim 33, wherein theprocessor is configured to mark the sets of data as read.
 36. Thepayment card of claim 33, wherein, in response to receiving the secondsignal, the processor is configured to overwrite the set of data storedon the payment card or create a new record including a new count number.37. The payment card of claim 33, wherein the count number indicates howmany times a user of the payment card has visited a store and scannedthe payment card at the payment terminal.
 38. The payment card of claim33, wherein, in response to receiving a fourth signal, the processor isconfigured to store a reward value on the payment card.
 39. The paymentcard of claim 33, wherein, in response to receiving a fourth signal, theprocessor is configured to store a coupon rate on the payment card. 40.The payment card of claim 33, wherein the transceiver is configured toreceive a fifth signal configured to power up the payment card to enablethe processor to function without any power source on the payment card.